Malko Weighs In on Why Courts Enforce Mediation Preconditions
Many contracts contain dispute resolution clause that require parties to attempt to mediate any future disputes before either party files a lawsuit or arbitration arising out of that contract. When disputes arise, parties to the contract sometimes ignore this mediation requirement on the grounds that it would be futile. Courts have routinely rejected this argument and hold that compliance with a contractual agreement to mediate is an unenforceable precondition to filing a lawsuit or arbitration.
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